If You Raise Taxes On Rich People And Businesses, You Get Fewer Rich People And Businesses

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After Phil Mickelson created controversy with his comments about too-high taxes, professional boxer Manny Pacquiao is refusing to fight in the United States because of our national tax rate.

This is what happens when tax rates are prohibitively high. People take their business, and their wealth, to friendly tax climates:

Manny Pacquiao’s chief adviser insisted Monday that the Filipino superstar’s preference is for his next bout – a fifth fight against Juan Manuel Marquez – to take place away from Las Vegas, with the off-shore Chinese gambling resort of Macau emerging as the “favorite.”
Michael Koncz told Yahoo! Sports that the 39.6 percent tax rate Pacquiao would face if he were to fight again in the U.S. makes a fall bout in Las Vegas “a no go.”

Promoter Bob Arum is hopeful of arranging a fifth match between Pacquiao and Marquez in the fall, potentially on Sept. 14. Arum’s preference is for the fight to be at the MGM Grand in Las Vegas, which is his company’s home base.

But Arum and Koncz say Pacquiao is balking at the additional money he’d lose to the government if the fight were held in Las Vegas. Arum said Pacquiao would not have to pay taxes if the fight takes place in casinos in either Singapore or Macau.

“Manny can go back to Las Vegas and make $25 million, but how much of it will he end up with – $15 million?” Arum said. “If he goes to Macau, perhaps his purse will only be $20 million, but he will get to keep it all, so he will be better off.”

Meanwhile, we’re seeing this trend among the various states within US borders too. The State of Illinois, which seems to be in a competition with California to see which state can go bankrupt first, implemented massive tax hikes to address big budget shortfalls. The result? Businesses like State Farm are fleeing to states like Texas with lower taxes:

Insurance chain State Farm is reportedly buying up substantial workspace in Texas, which may signal a coming exodus from the company’s home state of Illinois. …

At the end of 2010, in a special session, the Illinois Legislature passed a 67% hike in its corporate and personal income tax. The state is struggling with a structural deficit and its credit rating was recently lowered. The state now has the worst credit rating in the country. A number of businesses have floated the idea of leaving the state. A move by State Farm, however, would devastate the downstate economy.

Not only is America plagued with high taxes, we’re plagued with tax uncertainty as well. Our government can’t even bring itself to budget, and in recent years our tax policy as been setfor a year or so at a time through a series of edge-of-the-cliff hostage negotiations.

Is it any wonder that businesses, and some of the richest and most talented people, are looking elsewhere in the world?

What’s particularly frustrating is the way our friends on the left carry on as though changes in tax policy have no impact on the decisions people and businesses make in the economy. Clearly, tax policy does impact decision making.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • igx

    Business activity and capital should not be taxed at all except for user fees.

  • WOOF

    Birds of a feather.
    NY and California, high tax states,
    are infested with the rich.

    • two_amber_lamps

      Not for long Capt. Class Warfare Marxist!

    • http://sayanythingblog.com Rob

      Yes, but for the purposes of taxes, where are their fortunes? Where do they live, officially?

      • WOOF

        Manhattan and Conneticut where they pay taxes in both states and city taxes. People live where they can make money.

        • Thresherman

          “People live where they can make money.”
          So which would be better then, a state where you make $100,000 but are taxed $50,000 or a state where you make $90,000 but are only taxed $25,000?

          • WOOF

            Those people are the chauffeur and the nanny.

        • alanstorm

          What’s your point? Of course the very rich can afford to live in these areas, and they make an economic judgement that it’s worth it – for them.

          Some of them also have enough ties to the areas, economic or otherwise, that they put up with it.

          As Thresherman points out, rich people aren’t moving there. They are abandoning those areas if they can.

    • Thresherman

      Both are losing their rich to low tax states like Florida and Texas. Also note none of the rich are moving there.either.

  • SigFan

    How dare this evil rich bastard want to keep more of what he earns? What does he think this is – a free country or something?

  • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

    Exactly.
    Remember how bad it was during the 90’s when the wealthy paid a bit more in taxes?
    Now those were some dark days.

    And by dark days, I mean in the black.

    Who could ever forget the terrible times we had during the 40’s and 50’s when the tax rate was way up there. Oh the bread lines.

    And by bread lines, I mean the wealthy lining up at banks depositing all the bread they were making.

    • mikemc1970

      Yes, but in all fairness, during the 90’s we didn’t have an actual Marxist as president. Clinton actually wanted economic growth while Obama seeks to destroy it.

      • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

        Mr. 1970, what would President Obama, an American millionaire, gain from, as you say, destroying it?

        • mikemc1970

          In order to fulfill the dreams of his father of an America economically and militarily incapable of being a world power.

          • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

            Really, Mr. 1970?

            You think President Obama wants America vulnerable to being overthrown?
            Really?
            Come on now, Mr. 1970, really?

          • mikemc1970

            I know Obama is a pathological liar so he could just be lying about wanting to fulfill his fathers dream of seeing America reduced to a third world power, but the words from his book, are all I have to go on. It would be even less believable though if the Fed weren’t stocking enough ammo to fight a war for a 24 years equal to the fighting level seen at the height of the Iraq war.

          • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

            So Mr. 1970, now you think President Obama, whom you claim wrote in his book about “seeing America reduced to a third world power”, was actually lying but is buying enough bullets to fight the American military when the time comes for him to take over economically destroyed America anyway?

          • mikemc1970

            No I don’t, but coming from someone who believes that punishing successful people equals economic growth, I’m not surprised that you read it that way.

          • alanstorm

            You make the mistake of assuming he recognizes the consequences of his policies. Nothing he has done so far indicates any ability to think that far ahead.

            If he was planning to harm the country (while placating the liberal sheep), what would he be doing differently? Not a thing.

          • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

            So you think President Obama, the son of a single mom, who came from a dope smoking Hawaiian lifestyle, educated himself, got into Harvard, became editor of the Harvard law review, turned down lucrative job opportunities to become a community organizer, ran for and won a State senate seat, ran for and won an election to become an Illinois senator in Congress, American millionaire, a man who successfully ran for President, twice, doesn’t have the capacity for long term thinking?

          • sbark

            There is an adage that reads “never attribute to malice that which can be adequately explained by stupidity… but don’t rule out malice.” This is known as Hanlon’s Razor theory……..
            I see malice in Obama as a result of being brought up with hatred for everything the USA stands for, and malice took roots because of his stupidty that could be molded as desired by his “handlers”
            Even forgetting his father, his boyhood mentor-Frank Marshall Davis was Communist/ anti USA enough so that even in the 60’s the Dem’s had him in front of congressional hearings.–thing is he must have persuaded them to turn also during the hearings……..
            20 yrs in front of Black Liberaltion theolgy/ Ideology of Rev Wright–which is basically communism with a African American “accent”
            Then his neighbors and long term associates of Weather Underground Bill Ayers, Louis Farakahn, his Mao lovers he has in his regime, Then the several communists he wanted in positions but were stopped.
            As Mark Levin flatly states——-we’ve been infiltrated by Anti USA forces, and they are in the White House.

          • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

            bark, you listen to Levin?
            That explains a lot.
            Good luck with that.

          • sbark

            bob……you still listen to Obama……….that explains more…..
            It tells me you’ll fall for just another messianic figure in world history….how’d that work out in the 1940’s?

          • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

            FDR did the world a favor by going around the gop congress, so I’d say it worked out pretty good.

          • sbark

            We are present day wittness’s to the crashing of the world FDR started…….Liberalism doenst work, even in the worlds weathiest most productive country ever……..
            …but actually, I was thinking of the Lefts love affair with Hitler —much more messianic god’esque figure to the Left than FDR ever was.

          • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

            You’re kooky.

          • WOOF

            FDR rule began the greatest expansion of US economic prosperity, the rise of the middle class.
            Ten best GDP growth years in US history”
            1942 – 18.50%

            1941 – 17.10%

            1943 – 16.40%

            1936 – 13.00%

            1934 – 10.90%

            1935 – 8.90%

            1940 – 8.80%

            1950 – 8.70%

            1944 – 8.10%

            1939 – 8.10%

          • sbark

            So why then does history record that FDR prolonged the Great Depression, and there was no relief until 1947 when his massive anti-business regulations were repealed.

            http://newsroom.ucla.edu/portal/ucla/FDR-s-Policies-Prolonged-Depression-5409.aspx

            You better realize stats from Krugman dont mean squat…….

          • WOOF

            The right wing has always hated FDR and the country still loves him. Can’t stop him.“Three-and-a-Half Million U.S. Employees Have Been Mislaid: Or, an Explanation of Unemployment, 1934-1941.”
            More than 30 years ago, Darby observed that correctly counting those 3
            and a half million people as employed workers effectively debunked “the
            ‘un-fact’ that recovery was extremely slow from 1934 through 1941. From
            1933 to 1936, the corrected unemployment rate fell by nearly 5
            percentage points per year…”

            the WSJ andf wacos Harold L. Cole and Lee. E. Ohanian considered everyone who worked for the WPA unemployed.

          • sbark

            Pretty much like Obama huh……….all the long term damage done by FDR to the country……..with no responsibility taken for it…….because he freely spent other peoples money……
            …..and now we have Obama, having spent more than the other some 45 president before him combined, with no positive results……….he also gets a pass on what he has done to this country
            Obama wails for jobs, but does everything he can do destroy them, he says he is for the middle class, but his every action pushes them out of it, he laughably says he wont add a dime to the deficit…….

          • jl

            Gee, I seem to remember some kind of war during that time, where we ramped-up production to the max. Wonder if that could have anything to do with it? Now, compare that to Obama’s time. Are you saying FDR was a better President than Obama has been? Who hasn’t?

          • $8194357

            The base of the redistributive debt ponzi put in place woofy…
            Made the top layer of the crony capitalist ponzi filthy stinkin rich at the expense of billions of dhimmi taxpayer jizya mules….

          • JoeMN
          • mickey_moussaoui

            FDR made the depression worse

          • sbark

            exactly, worse and alot longer than it needed to be.

          • jimmyjam

            …by listening to austerity fucktards. Then he corrected that and the U.S got back on track again. Let’s hope Obama doesn’t make that mistake.

          • ellinas1

            Mark Levin?
            How much per year do you spend on his book?

          • http://flamemeister.com flamemeister

            RBB plays frog, jumping from lily pad to lily pad and skips over the swamp in between.

          • Hannitized, Proofs obsession

            The swamp of stupidity? Why shouldn’t he?

          • Thresherman

            He educated himself? Really? Like Lincoln did? He was best known for voting “present” in both the Illinois legislature and the Senate. He becomes a stuttering fool when he has to speak without prepared text or a teleprompter. He has never done a single thing of note in the private sector or practiced as an attorney, so how did he become a millionaire? His wife owed her position to his political position which in turn was due to the influence of others. He is also the man who said that he would not sign Obamacare if it added one dime to the deficit and when at the summit with congressional Republicans, Paul Ryan started to point out the many trillions of dimes it would add to the deficit, this far thinking seer of yours famously said, “I don’t want to get bogged down in all that.” This is the man who couldn’t be bothered to make a single phone call while our ambassador to Libya was being tortured raped and murdered and three other US citizens were dying to save the lives of some 40 odd others.

            So yeah, color me unimpressed by this media and liberal construct who drives off from the ladies tee while the country falls apart around him.

          • WOOF

            He bloodied the swollen faces of Ryan and his mate. They’re still pouting.

          • mickey_moussaoui

            lol, afirmative action…lets see those college transcripts. According to the REAL college professors that worked with Obama he was a real loser protected by AA. Oh,yes, he has long term thinking and millions of idiots to give him the opportunity to wreck havoc on the nation like a good Marxist. People who work for a living have become the slaves of people who vote for a living. Obama isn’t stupid, he is a cunning perfidious charlatan.

          • Rushbo

            OMG, that’s hilarious. It seems these folks don’t have the capability to look at their thoughts and recognize the foolishness of their conclusions.

          • http://flamemeister.com flamemeister

            He in fact does recognize the consequences of his policies. He is thinking ahead. His plan to harm the country is fully drawn up and is being implemented daily.

          • Hannitized, Proofs obsession

            How did leaving the country help your country….in your mind?

          • http://flamemeister.com flamemeister

            Didn’t leave the country. Just served you a bucket of B.S. & you tucked right in.

          • Hannitized, Proofs obsession

            You gave that lie to the entire SAB conservative team that you regularly misinform with your ignorant paranoid delusions. Don’t try to cover up for it now, out of your own embarrassment.

          • http://flamemeister.com flamemeister

            Oh my! Widdle hannikins is off-gepissed, having been played the fool. My Costa Rico fantasy was in response to your comment to me. I lied to you specifically, which is what I occasionally do to people for whom I have total contempt. But be a bit flattered, it was a great short piece that was a special gift to you. LOL.

          • Hannitized, Proofs obsession

            You sir, are a filthy liar. Here’s how you started the context for your statement:

            “For all the anti-Semitism that has emerged in this country over the last few decades, it is ironic that suddenly virtually everyone has become a 1930s Jew who firmly believes that what is happening is not really happening. I would not do well in a camp, and I am certain, based on collected data, that lists have already been drawn up along with the organization, training and arming of personnel for purposes of population transfer to camps. I do not get my information from Alex Jones, Glenn Beck, and suchlike whom I never listen to—I get it from observation, analysis, and considerable political, historical, and psychological knowledge and research. I continue to monitor the situation, develop new information sources and observe the behavior and “thinking” of my “fellow Americans.” At this point everything indicates disaster with very long term consequences. In any case, I am unlikely to be alive through much of it. I do consult with my children, two of whom are in all likelihood doomed liberals. They are the main concern, along with my wife. I would like to have a safe haven and preserved assets in place for all of them.” – Flamer

            And here’s how you ended it, long before I entered the conversation:

            “Have fun everyone. We will be leaving for … elsewhere.”

            “Along with many others, I no longer have a country. In any case, it
            should go back to the Indians and Hispanics a.o. The U.S. is on
            fast-track to becoming a communist state ruled by criminals and
            populated by fools and I’m too old to want to participate in what will
            be coming …”

            I appreciate the sentiments. Remember, in the Stalinist period many
            children and grandchildren ratted out their parents and grandparents to the NKVD, for which service they were honored and rewarded. I have seen this mentality in many people who are no longer children, and God knows what monsters have been bred in the public schools. As I say, I will be dropping by this blog from time to time, but right now I am formulating a series of essays which I can send to wherever from Ecuador, Costa Rica or some other place in the warm south. Some might appear in The Dakota Beacon.” – Flamer

            http://sayanythingblog.com/entry/senator-graham-were-going-over-the-cliff/

          • http://flamemeister.com flamemeister

            Better take one of your pills. None of this says that I am in Costa Rica or have actually left the country. It is open. I have either decided not to do so right away, or have decided to wait. The actual lies were for your benefit. Sorry you got suckered, but not as sorry as you are for being the sucker.

          • Hannitized, Proofs obsession

            Telling a lie doesn’t make your victim a sucker, it makes you a liar.

            BTW:

            “I have either decided not to do so right away, or have decided to wait.”

            You said the same thing twice. Deciding not to do something right away IS waiting. Guess what having paranoid delusions makes you?

          • http://flamemeister.com flamemeister

            Good read, Whichever way you take it, it’s one or the other, especially when they’re both the same. BTW, I have lied to you quite often in the past because you are a contemptible person and it’s fun for me to screw you over. You are a classic fool, who always returns to eat his own vomit. Do the right thing, sucker. And, again, BTW, I really am in Costa Rica.

          • Hannitized, Proofs obsession

            The only contemptible person here is you, the guy who admits to lying. Based on your own words, I would wager that your own grandchildren find you difficult to take, being that they are the sort of “degenerate liberals” you love to hate so much, and that you believe are destroying the country, as you see it through your twisted perception of the world.

          • Hannitized, Proofs obsession

            WOW, flamemeister, you really don’t know when to quit your lying, do you? Here’s one of your statements that shows you left the country:

            “Just got here. Had to stop off in Antigua to trade the Gulfstream for a boat, then a quick stop in Panama to transfer some funds. Plan to stay on the boat until the remodeling on our little hacienda is completed. The place is pretty much like I remembered it, except for some condo development and a few Big Boxes. Took one of my wives to the Museo del Oro this morning ’cause she hadn’t gone to see it last time. Glad you asked.” – Flamer

            http://sayanythingblog.com/entry/maybe-the-answer-is-more-gun-freedom-not-less/

          • http://flamemeister.com flamemeister

            Alas, Twit-wit, as you will note—and as I just got done telling you—that B.S. story is in direct response to you to whom I lie shamelessly, because I consider you a POS with no character, a wormish personality, and devoid of intelligence. You really hate it when I use liberal tactics, right? “…one of my wives…” was there to help you see that you were being had. I even gave you a chance, sucker! Now then, do the right thing.

          • sbark

            Overthrown maybe not–that would be a ultimate dream for the left….
            Incapable of being a force for good in the world—-dang near there economically right now–as the Def. Dept states they can only place one carrier group into the Persian gulf.
            One can already see Putin, China, Iran, N.Korea testing their prior limits of agression and military buildup……….
            Soon the appeasement mirroring Neville Chamberlin will start in earnest……….History is repeating…….

          • jimmyjam

            Right, because we (the U.S.) only spends more than all other countries combined on ‘defense’.

          • mickey_moussaoui

            why would he care? He would be at home in any communist regime.

          • Hannitized, Proofs obsession

            He’s not thinking, he’s emoting.

          • http://ndgoon.blogspot.com Goon

            Nope, Obama just wants to run the country into the ground.

        • http://flamemeister.com flamemeister

          Are you possibly implying that what Obama does is going to have a negative effect on his own wealth and perks that of his friends and supporters?

        • mickey_moussaoui

          ask his master Satan

      • http://ndgoon.blogspot.com Goon

        Good point, Obama isn’t half the president that Clinton was and Clinton wasn’t that great of a president.

    • mickey_moussaoui

      Clinton knew how to compromise plus he was riding the coat tails of Regans economy. The tech boom didn’t hurt either. Now we have No compromise, NO Reagan and no tech boom. All we have is a little floppy ear perfidious charlatan marxist liberal. We are screwed.

    • jl

      And who can forget that, contrary to your assertion, the rich do pay more in taxes now that in the 90’s. Top rate same both times, 39.5%, but the libs added some extras last year. In 1980, when the top rate was 70%, the richest 1% paid 19% of all income taxes. Latest figures are from last year when the top rate was 35%- the richest 1% paid almost 40% of all income taxes. Lesson for liberals- if you want more of the rich people’s money, lower the rates. “Who could forget the terrible times during the 40’s and 50’s, when the tax rate was way up there. Oh the bread lines.” Speaking of the 40’s and 50’s, let me ask you something- Did the federal agencies have enough money? Or, even then, did they consistently ask for more? Were all the self-appointed spokesmen for the poor and needy satisfied that the government was bringing in all the money it could? There were still poor, there were the disadvantaged. How was that possible with the tax rate so high? I thought so.

      • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

        Could you be more wrong?

      • jimmyjam

        Thanks math major. Your percentages don’t mean shit. The 1% made far less of the total amount earned when the rate was 70% and the middle class, which I would consider the 3rd and 4th quintiles, made far more of the total amount of money earned. That is why the 1% pay far more of the total tax bill percentage-wise now. You are either really rich or a moron if you are okay with that.

  • Matthew Hawkins

    TAke away his work visa. Make sure he never fights here again. We lose nothing.

    • sbark

      whose work visa………Obama’s?……..LOL

  • $8194357

    Barry “IS” the manifestation of marxist deconstructive political correct social justice
    destruction of the rule of law constitutional republic…..
    Hybred with islamic taqyya and stealth jizya reperations from the infidel state….

    The ideologies Barry boy wonder and his one world progressive ilk follow are
    “meant to” destroy from within our western rule of law capitalist republic and put the puppets of the international olagarchy firmily in the tyranist drivers seat….
    Period…End of story…..

    Quote:

    What about his efforts to fundamentally transform America’s morality, based on the Judeo-Christian ethics that led to Western civilization as we know it? His attacks on the institution of marriage, which, until very recently, he disingenuously claimed to support, once again demonstrate that what Obama opposes is the unique self-governing society under the rule of law America has attempted to be.

    And now, as if to underscore my theory, he’s coming after your guns and moving quickly to extend a “a pathway to citizenship” for perhaps tens of millions of foreigners who jumped ahead of the line of millions of other would-be immigrants who followed the laws of the land in their efforts to come to the greatest country the world has ever known.

    Obama isn’t stupid.

    Obama is at war with America.

    Read more at http://www.wnd.com/2013/02/whats-obamas-real-objective/#xJSSzpWruKAi9v3b.99

  • Hannitized, Proofs obsession

    This statement coming from a guy who does fights in Las Vegas, where he avoids state tax all together. What does this prove??

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